IRS to start regulating paid tax preparers

[Tax Prep by Deb]

I prepare taxes in one of the few states that already requires testing. CTEC has a requirement for continued education. I personally feel that the requirements should be a bit stronger. As long as the testing requirements were similar to CTEC (of which CTEC participated in the IRS study) I can't see anybody on this board, regardless of their official title, not being able to pass the exam. I could be wrong, but years of experience along with all the help we give each other here should help us to pass the exam.

As far as HR Block goes, they along with the other chains were specifically mentioned in a news article in Central California as the ones that IRS will be regulating! (I wonder why?) Not saying that all HR Block offices are bad, I can say the one in my town is very incompetent and I doubt very seriously unless they get their act together, would be able to pass the exam. I don't think it's a matter of them not knowing how to do taxes, they are just very sloppy at doing it.

Well, I just had to put my two cents worth in.

Deb!

P.S. I have high regards and respect for those who have gone the extra mile and got their degree. If I was younger, with less responsiblity, I probably would consider it myself. I have however came across some CPA's who like HR Block is very sloppy. I don't believe it's them personally, but many in my area hire tax preparers who do the bulk of the tax work, and unfortunately their work is not closesly looked at. This comes from personal experience and is to a large degree why I'm doing taxes today. We chose three losers in a role, that had it not been for my dad and I looking at everything, it would have cost us thousands. And what was really upsetting is that when we pointed out the mistakes (everything had been turned in, we didn't leave anything out) they charged us for fixing their mistake.

So I believe in this world we all have good ones and bad ones, and whether we have a title to our name or not, really isn't the issue so much as we have an obligation to do best by our clients while at the same time respecting the law.

[Pacun]

>>

Then shouldn't ALL preparers be tested, including attorneys, CPAs, and enrolled agents?

Everybody will be tested or required to attend classes after the initial exams. CPAs, Attorneys and Enrolled agents will be excused for the initial exam because they have already passed harder exams.

Some one said that preparers will not sign. You are absolutely right. As a matter of fact, preparers that do not sign returns are the biggest headache for the IRS. "Public education???" you must be kidding, the public is the one driving that force. The public is the one that goes to those preparers who will NOT sign the return and pay them 200% more of what I charge.

I love this community, I feel that no one should be allowed to prepare taxes without this community. During my first month of tax preparation, I will make a small donation in gratitude of all the help I get here. CPAs, EAs and Attorneys are not exempted from donating.

We should start another thread since this one is becoming too big.

[elfling]

From our end, our partnership sees a potential snagging point on the testing ~ that of "specialization".

This is the 25th year of being in business as accountants & tax preparers. Our clientele has steadily grown in that time. We carry payrolls and basic bookkeeping all year long but the main revenue does come from tax returns. Several years back we made the decision to limit the types of returns we prepare based primarily on who was typically walking in the door. We prepare returns from the simplest students requiring only 1040EZ, to folks with complicated schedule A's, investments, and multiple rentals, to sole proprietorships, partnnerships, and LLCs, as well as a few non-profits. But we chose to no longer take on full-blow corporations. Corps require study time beyond what we could manage with a growing family.

Neither of us has attempted the EA exam partly because we have not found the opportunity to study the corporate side of it. So how will the new testing play out for us? We feel very confident about passing testing on the returns we typically study, prepare, and take update classes on. But what of those less familiar to our practice?

We wonder if we are unusual or somewhat the norm. Are there others of you out there like us?

Elfling & Elvenprincess

(Linda & Jolene)

[mcb39]

That pretty much describes my business and I would venture to guess that would include many of the other preparers and posters on this board.

[Lion EA]

Unlike the EA exam, the new exam covers personal returns or the other with personal and small business 1040 returns. So, no need to study up on corporations if you don't want. The official notice included a chapter covering the test topics.<br><br>HRB has had its own certification process for a few years, tests and 30 hours of education required each year. And, that's after passing the Basic test. So, HRB preparers certainly have the opportunity to be well enough educated to pass this new IRS test. Obviously, we've all met or seen HRB preparers who don't care or are run over by clients demanding their way.&nbsp; There are so many of them, that we can come across lots that we wouldn't want to work with.&nbsp; And, some offices seem to attract them.<br><br>Nothing will get rid of all bad preparers, those who chose to be bad and those that just are not good. But, registration might make it easier to track them and get rid of a few. Of course, I can say all of this as an EA who won't have to take a new test and already takes plenty of courses each year!<br><br>Prometrics has 5000 exam centers.&nbsp; You shouldn't have to drive far.&nbsp; When I took the two-day EA exam, I really didn't want to have to take it ever again.&nbsp; And, the only site in CT in those days before Prometrics was a couple hours away with bad rush hour traffic.&nbsp; So, I booked a room at the hotel for two nights.&nbsp; It was well worth the price to be well-rested and unrushed and pass all four parts and be done with it evermore!&nbsp; Besides, I was already working in the field for many years, so it was business travel.&nbsp; The IRS even had a special rate with the hotel.<br>